Indian reports capital increase – September 25, 2006

The company trying to bring back the Indian Motorcycle brand announced a capital increase of $30 million to fund the relaunch.
Stellican Limited, a London-based private equity firm, is the company behind the relaunch. Stellican acquired the trademarks of Indian Motorcycle Company in 2004.
The company did not say where the capital increase originated and company officials were not available before press time.
“This capital increase is a clear demonstration of our significant commitment to the successful future of Indian Motorcycle. It ensures that the company has the proper financial foundation,” said Indian Chairman Stephen Julius in a released statement. “However, the success of Indian Motorcycle will not be based on capital alone. Recruiting a world-class management team and following the appropriate business strategy are paramount.”
The company has had a change in its management as previous President David Wright resigned on Aug. 25.
Steve Heese, a longtime investor and partner with Stellican Limited, has taken over as president while Stephen Julius remains executive chairman of the company. Heese also currently serves as president of another Stellican Investment, Chris-Craft Corp.
Julius said there would be no change to the direction and plans for the company following Wright’s departure. Indian has previously said it plans to introduce a new Indian Chief in the second half of 2007. psb